Arkansas Department of Health

Transcription

1 Submitted on July 18, Arkansas Department of Health 815 West Markham, Slot 37, Little Rock, AR Phone: FAX:

2 TABLE OF CONTENTS I. INTRODUCTION A. Arkansas Drinking Water State Revolving Loan Fund B. What s New For The DWSRF Funding Process (Figure-1)...3 II. PROJECTS AND AVAILABLE ASSISTANCE... 4 III. GOALS A. Short Tern Goals...5 B. Long Term Goals... 6 C. Environmental Result Goals... 7 IV. DISTRIBUTION OF FUNDS A. Distribution of Funds between DWSRF Program and SSAF Programs... 8 B. Distribution to Specific Projects in the DWSRF Program PRIORITY SYSTEM PRIORITY LIST OF PROJECTS FUNDABLE LIST OF PROJECTS BYPASS PROCEDURES EMERGENCY PUBLIC HEALTH PROJECTS C. Rationale Used to Determine the Type and Terms of Assistance LENDING RATE REPAYMENT PERIOD...12 D. Fees Assessed on Entities...12 E. Green Project Reserve (GPR)...12 F. Additional Subsidization...12 G. Wage Rate Requirements (Davis-Bacon)...13 V. DISADVANTAGED COMMUNITY ASSISTANCE A. What is a Disadvantaged Community?...13 B. Affordability Criteria...13 C. Identification of Projects...14 VI. FINANCIAL PLANNING PROCESS VII. FINANCIAL STATUS STATE MATCH SOURCES LEVERAGING OF THE DWSRF CASH DRAW RATIO PROPORTIONALITY...15 VIII. CAPITALIZATION GRANT PROGRAMS AND AMOUNTS REQUESTED...16 A. ADMINISTRATION OF THE DWSRF PROGRAM...16 B. SMALL SYSTEMS TECHNICAL ASSISTANCE PROGRAM...16 C. STATE PROGRAM MANAGEMENT PROGRAM...17 D. WELLHEAD PROTECTION PROGRAM...17 E. CAPACITY DEVELOPMENT PROGRAM...17 IX. SMALL SYSTEM ASSISTANCE...18 X. CAPACITY ASSESSEMENT...19

3 A. Technical Capacity...19 B. Financial Capacity...19 C. Managerial Capacity...19 XI. TRANSFER PROCESS XII. CROSS-COLLATERALIZATION PROCESS...20 XIII. PUBLIC COMMENT...20 XIV. AUDITS AND REPORTING...20 XV. INTENDED USE PLAN AMENDMENT PROCEDURES...20 CHARTS Chart 1- Summary of Funding for Open SRF Capitalization Grant set-asides...22 Chart 2 - SDWF Cash Flow Diagram...24 Chart 3 SDWF Sources and Uses...25 Chart 3-1 ULO Analysis...26 Chart 4-1 SDWF Comparison of Grant Payments, State Match and Set-Asides...29 Chart 4-2 SDWF Required Binding Commitments and Actual Binding Commitments...30 Chart 5-1 SDWF Actual Binding Commitments...31 Chart 5-2 SDWF Projected Binding Commitments...32 Chart 6-1 SWDF Actual Disbursement Schedule...33 Chart SDWF Projected Disbursement Schedule...34 Chart Drinking Water Project Fundable Priority List...35 Charts 8-1 thru 8-9 Capacity Analysis...38 Chart 9 Summary of Authority To Transfer Funds, Authority Reserved for the Future and Actual Funds Transferred Chart...47 APPENDICES APPENDIX A - PRIORITY SETTING PROCEDURES FOR DRINKING WATER STATE REVOLVING LOAN FUND Project Priority List...58 APPENDIX B - PUBLIC NOTICES AND COMMENTS APPENDIX C - EPA ASSURANCES

4 I. Introduction A. Arkansas Drinking Water State Revolving Loan Fund This is the State of Arkansas (State) Intended Use Plan (IUP), prepared jointly by the Water Resources Development Division (Water Division) of the Arkansas Natural Resources Commission (ANRC) and the Arkansas Department of Health Engineering Section (ADH Engineering Section). In Arkansas, the overall program is named the Safe Drinking Water Fund (SDWF). The SDWF is made up of two programs which are the Drinking Water State Revolving Fund (DWSRF) program and the State Set-Aside Fund program. The Water Division, through an interagency Agreement with ADH Engineering Section (the Primacy Agency in Arkansas), administers the DWSRF program. Through the DWSRF program, the Water Division will use funds for water projects that further the goals of the SDWA. The State Set-Aside Fund (SSAF) Program will use the funds to provide Small Systems Technical Assistance, State Program Management, Local Assistance and Administration Funds for the DWSRF. With the exception of the Administration Funds for the DWSRF, which go to the Water Division, the ADH Engineering Section administers all facets of the SSAF program. In coordination with the Engineering Section, the Water Division prepared this plan which identifies intended uses of the funds available to Arkansas as authorized by the SDWA, as amended in 1996 (42 U.S.C. 300j-12 et. Seq.). B. What s New for 2014 In SFY 2013 Arkansas made changes to how its Lending rates will be determined. The Lending Rate is composed of two parts: the interest rate and the servicing fee. The initial objective for ANRC is to establish a Lending Rate for DWSRF loans at 80% of the current bond market s taxable or tax-exempt rate depending on whether the project qualifies for a taxable or tax-exempt rate. The Lending Rate will be determined at the time the Borrower is developing the Bond Purchase Agreement and the Bond Ordinance. The Lending Rate is determined using a formula that starts with a published list of daily market interest rates for a series of maturity dates for General Obligation Bonds. Those rates are modified to take into account the fact that the DWSRF is a Revenue Bond program and then the series is converted to an average weighted value. That single rate is then multiplied by 80% to get the Lending Rate. The servicing fee is currently set at 1.0%, and interest rate is the difference between the Lending Rate and the servicing fee. The servicing fee is the same for all projects, so the interest rate changes as the lending rate changes. 1

5 Arkansas varies the lending rate in this manner to encourage repayment of the loans as quickly as possible in order for the DWSRF program to fund other projects. The 1% service fee is placed into an account which is outside the DWSRF fund. On January 11, 2013, the Lending Rate was 1.1% for a ten year repayment period, 1.9% for a 20 year repayment period and 2.3% for a thirty year repayment period. Prior to January 2013, the lending rate was 3.00% for loans that repay in 10 years or less, 3.25% for loans that repay in years and 3.5% for loans that repay in years. 2

6 Figure 1: The DWSRF Funding Process Intended Use Plan *Plan for Year *Set-Aside Overview *Project Selection Process The public is encouraged to provide input on our DWSRF plans Public Review State Match Capitalization Grant Award We submit the final application to EPA for grant award Set- Aside Work-plans We provide a 20% match to federal funds for loans The EPA grant is used for loans and set-aside assistance Our work-plans, approved by EPA, describe our plans for set-asides use. DWSRF Loan Account DWSRF Set-Aside Account Loans interest rates on most loans are 80% of market rates Public Water Systems Repayments - Term is limited to 20 years (or 30 years for Disadvantaged Communities) and begins one year after project completion Set-Aside Assistance To State Programs, Public Water Systems, Non-Profits 3

7 II. Projects and Available Assistance This IUP contains a list of projects the State anticipates to fund and information on how the State plans to use: (a) the funds carried over from State Fiscal Year (SFY) 2012, which includes set-asides from the capitalization grants, (b) the remainder of the 2011 capitalization grant in the amount of $10,070,058 and the 2012 capitalization grant in the amount of $13,582,000 which have already been received (c) the 2013 allotment in the amount of $12,743,000 which will be applied for during SFY14 and (d) the matching funds that the State will provide to go with the EPA funds, and (f) the funds the State receives from the repayment of loans previously made from the Drinking Water State Revolving Fund (DWSRF) Program. The DWSRF program expects to disburse approximately $46 million to projects in SFY These projects are all designed to meet one or more of the goals of the SDWA which are (a) help ensure public health protection, (b) comply with the SDWA, and (c) ensure affordable drinking water. We expect to spend approximately $2.8 million from the SSAF program in SFY 2014 to provide assistance to communities as well as to provide administration funding for both the Water Division and the Engineering Section. More information pertaining to these projected expenses is available in Chart 6-2 of this report. III. Goals The Arkansas Drinking Water Program is an integrated and centralized program funded by DWSRF, PWSS and state funding. The primary focus of the program is to achieve public health protection and rule compliance. All mandatory and voluntary program elements, (i.e. technical assistance, capacity development, source protection, rule implementation, enforcement, etc.) are coordinated to assure this end. To support Goal 1 of the Safe Drinking Water Act (SDWA), which is to ensure public health protection, we will provide technical assistance to small systems through the Small System Technical Assistance set-aside. We will provide a highly trained staff in the Engineering Division, which is partially funded through the State Program Management set-aside, to provide technical assistance to and oversight of Public Water Systems (PWS) within the State. We will also provide Wellhead Protection Services and Capacity Development Strategy Assistance to PWS through funding received from the Local Assistance set-aside. To support Goal 2, which is compliance with the Safe Drinking Water Act, we have implemented the programs listed above to include providing Small Systems Technical Assistance, Oversight, Wellhead Protection Services, and Capacity Development Strategy Assistance. For detailed explanations on setasides, please refer to page 16. 4

8 To support Goal 3, which is to ensure affordable drinking water, we provide PWSs with technical assistance on how to use their systems more efficiently, and we offer low cost financing to PWS within the state. To support Goal 4, which is to maintain the long-term financial health of the SDWF, we ensure that our borrowers have the managerial, operational and financial capabilities to operate their systems properly. As long as the systems are operated efficiently and have the required expertise--either on staff or by contract-- to assure that the assets of the program are managed properly, the PWSs will have the resources to repay their loans. A. Short-term Goals The Division has committed to meet the following goals in the next 1 2 years. 1. The Division agrees to include in all agreements to provide assistance for any construction project carried out in whole or in part with such assistance made available by a drinking water revolving loan fund as authorized by section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12), a term and condition requiring compliance with the requirements of section 1450(e) of the Safe Drinking Water Act (42 5 U.S.C.300j-9(e)) in all procurement contracts and sub-grants, and require that loan recipients, procurement contractors and sub-grantees include such a term and condition in subcontracts and other lower tiered transactions. 2. Arkansas will continue to implement the State Public Water Supply Supervision Program plan in conformance with all requirements of the SDWA. The State Program Management set-aside will fund a portion of this implementation effort. This will include activities such as: review and approval of 200 (goal) plans and specifications, logging and tracking 1400 (goal) plan submissions, 250 (goal) sanitary surveys, technical assistance to PWSs in a variety of ways, and other implementation activities. 3. Arkansas will continue to screen projects using the Project Priority System to assure the SDWA overall goals are given priority in the DWSRF program (Goals 1, 2 & 3). Goals are to have at least 30 projects on the Project Priority List. 4. The Division will apply for the funds in the first year that they are appropriated. 5. The Division agrees to comply with all requests for data related to the use of the funds under Section 1452 of the Safe Drinking Water Act (SDWA), and to report all uses of the funds no less than quarterly, as EPA specifies for the Drinking Water Project Benefits Reporting database and the Federal Funding Accountability and Transparency Act (FFATA) Requirement. 6. The Division agrees to provide in its Annual Report information regarding key project characteristics, milestones, and environmental/public health protection 5

9 results in the following areas: 1) achievement of the outputs and outcomes established in the Intended Use Plan; 2) the reasons for delays if established outputs or outcomes were not met; 3) any additional pertinent information on environmental results. 7. The Division agrees to support the repair, replacement and upgrade of existing infrastructures. Fix-it-first projects will be identified on the Drinking Water Project Fundable Priority List. 8. Arkansas will continue to implement the State source water assessment/protection program (Goals 1 & 2). All initial assessments required by regulation have been completed and new assessments will be processed as new sources / systems go on line. Technical assistance within the protection element of the program is pursued upon the request of public water system officials. 9. Arkansas will continue to implement the State capacity development program strategy at no cost to entities (Goals 1, 2 & 3). A vital element of this program is the technical assistance contracts provided under the Small System Technical Assistance Set-aside. These were restructured slightly to focus more on direct assistance to the systems. Goals for these contracts are 1500 hours of on-site technical assistance 50 3 day operator training sessions, and five CPEs. ADH also has a contract to work with small systems, which is providing infrastructure location by GPS coordinates and GIS mapping service. The goal for this contract is to map infrastructure for 40 small water systems. B. Long-term Goals Arkansas has committed to continually work towards these goals. 1. Arkansas will continue to implement the Public Water System Supervision Program in accordance with the requirements of the federal SDWA and in conformance with its Primacy commitments. 2. Arkansas will continue to implement the State source water assessment/protection program (Goals 1 & 2). 3. Arkansas will continue to implement the State capacity development program strategy (Goals 1, 2 & 3). 4. The Division will provide entities with a source of long-term, low-interest financing that will allow them to protect their customers health and comply with the SDWA (Goals 1, 2 & 3). 5. Arkansas will continue to screen projects using the Priority System to assure the SDWA overall goals are given priority in the DWSRF program (Goals 1, 2 & 3). 6. The Division is committed to enhance the DWSRF program for the benefit of future generations (Goal 3) by continuing to streamline the application process. 6

10 7. The Division will maximize the number of entities meeting the SDWA requirements by combining the DWSRF program with other State and Federal funding programs (Goal 3). 8. The Division plans to maintain the fiscal integrity of the DWSRF (Goal 3 & 4). 9. The Division is committed to maintaining the fund in perpetuity by protecting the principal that has been and continues to be deposited into the DWSRF program (Goal 4). 10. The Division will meet the growing demand for the DWSRF program by leveraging the Fund when the demand exceeds the current revenue streams (Goals 3 & 4). C. Environmental Result Goals The Division s DWSRF Program will satisfy EPA's Strategic Goal 2 for Clean and Safe Water, Objective 2.1 for Protecting Human Health, Subobjective for Water Safe to Drink by relating the activities of the Program to quantifiable environmental results. The following short term goals are presented in order to be in compliance with EPA Order # Arkansas will continue to implement the State capacity development program strategy at no cost to entities (Goals 1, 2 & 3). A vital element of this program is the technical assistance contracts provided under the Small System Technical Assistance Set-aside. ADH also has a contract to work with small systems, which is providing infrastructure location by GPS coordinates and GIS mapping service. Goals for these contracts are 83 assessments, 55 strategies, and 2500 on-site man-hours of effort. Other anticipated efforts include 2 eight-hour training courses, 24 one-hour group training sessions and four CPEs. Arkansas will continue to screen projects using the Priority System to assure the SDWA overall goals are given priority in the DWSRF program (Goals 1, 2 & 3). IV. Distribution of Funds In this section of the IUP, we will discuss the decisions the Division makes in choosing how to distribute the funds made available to the SDWF. In SFY 2014, the Division anticipates entering into two binding commitments for a total of $2,880,000. Out of the two binding commitments, the Water Division anticipates closing two (2) loans. More information is available on these Binding Commitments in Chart 5-2 of this report. The Division has defined the Binding Commitment date as the date the Bond Purchase Agreement (BPA) is signed by all parties. A. Distribution of Funds between DWSRF Program and SSAF Programs Arkansas puts a priority on providing existing PWS with technical assistance to insure all PWS met the requirements of the Safe Drinking Water Act. Arkansas endeavors to provide these services at no cost to the systems. To meet this goal, Arkansas allocates available funds to the SSAF programs. There are federal restrictions on the amount of funds that can be allocated to these programs, so Arkansas plans to distribute funds to 7

11 these programs to the maximum amount allowed. Specifically, Arkansas will allocate 10% of grant funds to State Program Management, 5% to Wellhead Protection Activity and 10% to Technical and Financial Assistance to PWS for Capacity Development this year. The Engineering Section will be responsible for the management and reporting needed for all of these SSAF programs. The Administration of the DWSRF program also falls in the category of SSAF programs. The Division plans to use the full 4% allowed for Administration. The Water Division will be responsible for the administration and reporting needed for the DWSRF program. Arkansas Department of Health (ADH) SSAF program is planning to bank funds from the 2013 grant for $280,000 to be used for the construction of projects by ANRC. See Chart - 1 Summary of Funding for open SRF Capitalization Grant Set-Asides B. Distribution to Specific Projects in the DWSRF Program Arkansas method for the development of the Priority List and Fundable List explains the process used to select systems to receive assistance. 1. Priority System The Engineering Section is responsible for developing the Priority System. They have developed a System that includes factors for projects that: (a) (b) (c) address the most serious risk to human health, are necessary to ensure compliance with the requirements of the SDWA, and assist systems most in need on a per household basis according to State affordability criteria. The Priority System Questionnaire is sent to each Public Water System (PWS) in the State each year. The Questionnaire describes the Priority System used by the DWSRF program and lists the point values assigned to each category in the Priority System. The Engineering Section sends the Questionnaire to the PWS so they can add new projects to the Priority List. The Engineering Section evaluates the Questionnaires that are returned and assigns point values to the various categories, included as Appendix A. A project s total points are used to determine the project s ranking. The more points that a project receives, the higher it is placed on the priority list. The new projects are added to the projects which were not funded from the previous Priority List, and a new Priority List is assembled. The only way a project can be placed on the Priority List is by an entity submitting a Questionnaire for the project. Since submitting the Questionnaire is a voluntary task, only projects that expect to be funded by the DWSRF program are listed on the Priority List. Once the Engineering Section prepares the Priority List, it is the Water Division s responsibility to create a Fundable List from the Priority List. 8

12 2. Priority List of Projects The Priority List is a list of projects that are interested in utilizing funding from the DWSRF program. Each project goes through an evaluation process to determine its relative priority as compared to the rest of the projects seeking funding through the DWSRF program. The Engineering Section prepares the Priority System used to rank projects, included as Appendix A, sends out the Questionnaires, determines the priority points for the projects that return Questionnaires and develops the Priority List. The Water Division then takes the Priority List and from this list establishes a Fundable List. The Fundable List is not a separate list, but is instead composed of projects from the Priority List that expect to expend funds in the near future (twelve months). In theory, the projects with the highest priority points get funded first. But in practice, it does not work that way. Most of the projects on the list cannot be funded exclusively through the DWSRF program. These projects typically require large amounts of grant funds that the DWSRF program cannot provide. The projects on the Fundable List are projects that either can be funded exclusively through the DWSRF program or have all of their other funding in place. 40 CFR (d) states that the Priority Lists of projects may be amended during the year under provisions established in the IUP as long as additions or other substantive changes to the lists, except projects funded on an emergency basis, go through a public review process. DWSRF projects that are qualified (in whole or in part) for GPR will be ranked on the same State priority list with non-gpr projects, and will be identified as GPR projects on those lists. Once ranked they will be selected separately from non-gpr projects, using the same priority system principles described above, until the total value of executed assistance agreements in qualified GPR projects totals an amount equal to at least 20 percent of the State s 2011 capitalization grant. There were no GPR requirements for the 2012 or 2013 capitalization grant but the Division plans to fund GPR projects in the future. 3. Fundable List of Projects 40 CFR I (2) (i) states that the IUP must contain a fundable list of projects that are expected to receive assistance from available funds designated for use in the current IUP. The Water Division defines receive assistance to mean closing a loan and expending funds. So, the planned start of construction or of expending funds is our indication of when a project will receive assistance. The process whereby the Water Division has developed a Fundable List from the Priority List consists of contacting -- in writing -- each PWS that submitted a project on the Priority List. In this letter we ask each PWS if it is going to start construction or expending funds on its project within the next twelve months. The letter makes it clear that by telling us that they will not be ready to proceed within 12 months does not jeopardize their chance for receiving funding from the DWSRF program. We explain that this process is how the Water Division makes its cash flow projections. 9

13 With this information, the Water Division can project the amount of funds needed and compare these projections with the amount of funds available. By comparing projections with funding availability, the Water Division can determine if all of the projects can be funded or if some will have to wait for the DWSRF to receive additional funds. It is Arkansas intent to offer funding to all of the projects listed on the Priority List. The Fundable List simply shows those projects that expect to be offered funding from the DWSRF in the near future. See Chart 7-1 SFY2013 Drinking Water Project Fundable Priority List 4. Bypass Procedures Arkansas intention is to fund every project on the Priority List as it becomes ready to proceed. With the exception of an emergency public health project, the State does not plan to bypass a project that is ready to proceed for another project with a lower ranking. If a project s readiness to proceed status changes after it was placed on the Fundable List, the State reserves the right to put the project on hold and take another project from the Priority List that is ready to proceed in its place. Previous examples of this kind of problem include court cases being filed, other funding being withdrawn, or change in administration of the entity proposing the project. If a project is not ready to proceed, the Water Division will substitute the next project on the priority list that is ready to proceed. If the situation develops which causes the State to bypass a project that is ready to proceed for another project, the State will report the case to EPA and include an explanation of the situation in the Annual Report. 5. Emergency Public Health Projects Arkansas reserves the right to fund projects not on the Priority List if these projects protect the public from an Imminent Health Threat. The Arkansas Department of Health is the sole entity in Arkansas that can declare a situation to be an Imminent Health Threat. The Director or his designee would make the determination of an Imminent Health Threat based on an immediate risk to the public health caused by a situation that is amenable to correction. The project developed to correct the situation would still have to meet eligible qualifications for funding from the DWSRF program. This procedure would allow a project designated as an Imminent Health Threat to bypass the Priority List and Fundable List phases of the DWSRF program only. Arkansas would notify EPA in the event that a project was designated as an Imminent Health Threat. This project would be reported in the Annual Report for that year and would be discussed during EPA s annual review. C. Rationale Used to Determine the Type and Terms of Assistance Prior to FFY 2010, the Division made the decision to only provide one type of assistance - loans. This decision was made because loans provide the most flexible use of the funds in the DWSRF program. The use of other types of assistance, Insurance or 10

14 Guarantees, means that funds are tied up and their uses are restricted. By providing assistance in the form of loans, the Division can vary the terms of the loans to help Disadvantaged Communities, refinance existing debt to improve the finances of entities or pledge the loans to Leverage Issues which would increase the funds available for the DWSRF program. The two terms that the Division modifies when it makes loans to entities are the Lending Rate and the Repayment Period. Starting with the FFY 2010 capitalization grant, the Division will now provide additional subsidization in the form of principal forgiveness, negative interest rate loans, or grants. Chart 5-1 and Chart 5-2 list the projects that ANRC anticipates funding from the DWSRF program. These charts show which projects are designated as a Disadvantaged Community or a Small System. 1. Lending Rate The lending rate is composed of two parts: the interest rate and the servicing fee. The Lending Rate will be determined at the time the Borrower is developing the Bond Purchase Agreement and the Bond Ordinance. The Lending Rate is determined using a formula that starts with a published list of daily market interest rates for a series of maturity dates for General Obligation Bonds. Those rates are modified to take into account the fact that the DWSRF is a Revenue Bond program and then the series is converted to an average weighted value. That single rate is then multiplied by 80% to get the Lending Rate. On January 11, 2013, the Lending Rate was 1.1% for a ten year repayment period, 1.9% for a 20 year repayment period and 2.3% for a thirty year repayment period. The Division varies the Lending Rate in this manner to encourage entities to repay loans as quickly as possible. The quicker that entities repay the sooner the DWSRF program will be able to use these funds on future projects. The servicing fee is currently set at 1.0%. Therefore, if the lending rate is 3.5%, it is composed of a 1.0% servicing fee and a 2.5% interest rate. The servicing fee is the same for all projects, so changes in the interest rate mirror changes in the lending rate. The service fees are deposited into the Fees and Administrative account which is outside the DWSRF and not subject to the four percent administration cap applicable to the DWSRF. 2. Repayment Period The Repayment Period is adjusted to provide Disadvantaged Communities with an incentive to use the DWSRF program. The typical maximum length of time allowed to repay a loan is 20 years. If an entity qualifies as a Disadvantaged Community, it will be allowed the option of extending its repayment period to 30 years. The interest rate will vary due to the extended repayment period. D. Fees Assessed on Entities The servicing fee of 1% is collected as part of the semi-annual loan repayment. These funds are placed in the DWSRF Administration Account and are used to fund eligible program expenses. 11

15 E. Green Project Reserve (GPR) The Division is soliciting for Green water projects from Public Water Systems (PWS) to be funded from the Drinking Water State Revolving Fund (Program). The Program has twenty percent of its funds reserved for Green infrastructure projects for the FFY2011 Cap Grant. There were no GPR requirements for the 2012 capitalization grant or the 2013 allotment but the Division plans to fund GPR projects in the future. To be eligible for funding, the applicant must be a PWS and the project must demonstrate that it will facilitate compliance with national primary drinking water regulations or otherwise significantly further the public health protection objectives of the Safe Drinking Water Act for water projects and meet the following definition of Green. Green water projects are: Water Efficiency The project must conserve water above the norms for operations and maintenance of a PWS. Potential Green water projects would include one-hundred percent water line replacement in systems experiencing greater than forty percent water loss. Arkansas has chosen two projects that qualify as green projects to satisfy the 2011 cap grant requirement. To date, Arkansas has not chosen any green projects for the 2012 or 2013 cap grants. See Chart SFY2013 Drinking Water Project Fundable Priority List F. Additional Subsidization The Division has developed the following system to determine if a project is eligible for additional subsidization funds for the Drinking Water Revolving Loan Fund (the Fund). To be eligible to receive additional subsidization from the Fund, a Borrower must show either: 1. The current utility rates or proposed utility rates for 4,000 gallons of water on an annual basis are at least 1.5% of the Median Household Income (MHI) for the project area. 2. The customers who benefit from a project are at least 51% have either Low or Moderate Income as defined by the U. S. Department of Housing and Urban Developments Community Block Grant (CDBG) Program; and have 1.25% of MHI. Once a project has been determined to be eligible for additional subsidization from the Funds, additional priority will be given to projects that meet the Green standards set by the Commission. The amount for the FFY 2012 capitalization grant to be reserved for Additional Subsidization is $2,716,400 and will be included in the Annual Report. Arkansas has chosen three projects that qualify to receive additional subsidization to satisfy the 2012 cap grant requirement. The amount for the FFY 2013 allotment will be reserved for Additional Subsidization is $2,548,600 and will be included in the Annual Report. Arkansas has not chosen any projects that qualify to receive additional subsidization to satisfy the 2013 allotment requirement. 12

16 See Chart SFY2013 Drinking Water Project Fundable Priority List G. Wage Rate Requirements (Davis-Bacon) Starting in FY2013 and thereafter, Davis-Bacon wage requirements now applies to construction of all projects carried out in whole or in part with assistance made available by a DWSRF program. Arkansas agrees to include in all agreements to provide assistance for any construction project carried out in whole or in part with such assistance made available by a drinking water revolving loan fund as authorized by section 1452 of the Safe Drinking Water Act (42 U.S.C. 300j-12), a term and condition requiring compliance with the requirements of section 1450(e) of the Safe Drinking Water Act (42 5 U.S.C.300j-9(e)) in all procurement contracts and sub-grants, and require that loan recipients, procurement contractors and sub-grantees include such a term and condition in subcontracts and other lower tiered transactions. All contracts and subcontracts for any construction project carried out in whole or in part with assistance made available as stated herein shall insert in full in any contract in excess of $2,000 the contract clauses. This term and condition applies to all assistance agreements under the authorities referenced herein, whether in the form of a loan, bond purchase, grant, or any other vehicle used to provide financing for a project. ANRC will continue to update this term and condition as updated procedures are provided with subsequent cap grants. V. Disadvantaged Community Assistance Arkansas will provide some incentive for Disadvantaged Communities to use the DWSRF program. Because of the limited funds the DWSRF program receives, that assistance is limited to offering additional subsidization (principal forgiveness) or extending the repayment period for loans from 20 years to 30 years. A. What is a Disadvantaged Community? In Arkansas, a Disadvantaged Community has been defined as any community with a Median Household Income (MHI) below that of the State s MHI. This information is collected as part of the Priority List, and Arkansas MHI is $39, B. Affordability Criteria The Division will offer two types of assistance to Disadvantaged Communities: an extension of the repayment period and additional subsidization. One of the criteria used is a comparison of the entity s MHI against the State s MHI. C. Identification of Projects Chart 5-1 and Chart 5-2 has information on which projects qualify as Disadvantaged Communities and the loan amounts they are requesting. VI. Financial Planning Process The Division is not limited to just the DWSRF program in meeting the drinking water needs in the State. ANRC has three other State programs that can fund the same kinds 13

17 of projects. There are two other Federal programs in Arkansas that also fund these types of projects. The Financial Planning Process used for the DWSRF program considers all of these sources of funding and each one s strengths and weaknesses. Arkansas also has an organization called the Water/Wastewater Advisory Committee that reviews all water and wastewater projects before the project applies to a funding program. This process allows the Water Division to have some idea of future projects and who they are likely to apply to for funding. This information is also used to project the future demand for DWSRF funds. The Division has hired professional Financial Advisors and Bond Counsel to help keep abreast of changes in the financial market and both State and Federal bond law. These professionals advise us on current market conditions so Lending Rates and Repayment Periods can be adjusted as needed. They also provide information on the consequences of leveraging, both in terms of funds that can be raised and the long-term effects of repaying the bondholders. The DWSRF program is continually being reviewed in terms of future demand, changes in loan terms and the need to leverage the program. The primary concern is always to provide low cost loans to entities in Arkansas while maximizing the funds available so no one is turned away because of the lack of funds. See Charts 8-1 thru 8-9 for detailed information. From time to time the Division, through ADFA, issues bonds secured by the revenues from the pledged DWSRF project loans. Proceeds from any bonds issued will be deposited directly into the DWSRF. To the extent that it would benefit the Program, ANRC may choose to exercise its option to cross-collateralize when issuing revenue bonds. The Division leveraged bonds for the first time in SFY 2012, EPA Region 6 was contacted regarding the leveraging prior to this activity. VII. Financial Status The Division receives funds for the SDWF from grants from EPA, the State match needed for the EPA grants, repayments from existing loans and interest earnings on various accounts in the SDWF. The funds are used to fund SSAF programs, the DWSRF program and pay the cost to administer the DWSRF program. Arkansas total funding sources for the DWSRF for SFY 2013 are identified in Chart 3. With the capitalization grants for FFY 2011, FFY 2012, and the FFY 2013allotment, the required State Match for those capitalization grants, interest earnings, and loan repayments. Arkansas will have over $53 million available during SFY 2014 for existing projects and future eligible program purposes. Chart 3 provides a summary of the Sources and Uses of Funds in the SDWF and Chart 3-1 provides a summary of ULO s. 14

18 1. State Match Sources The State of Arkansas agrees to deposit into the DWSRF, or make available through a letter of credit or a letter of credit type instrument, monies in an amount equal to 20 percent of each quarterly grant payment on or before the date on which the State receives each payment from the grant award. The State of Arkansas will fund the required State Match by using State appropriations, grants from State funding programs, or servicing fees. Chart 4-2 has a breakdown of the 20% State Match. In SFY 2014, the cumulative calculation looks like this: Cumulative Loans $193,012,300 Cumulative State Match $39,248,080 Percentage of State Match 20.33% 2. Leveraging of the DWSRF Arkansas leverages periodically to increase the funds available for assistance. Arkansas has no plans to leverage the Drinking Water program in State Fiscal Year If it does EPA Region 6 will be contacted prior to leveraging. 3. Cash Draw Ratio Proportionality Arkansas has received permission to vary from the normal proportionality ratio for federal fund disbursements. Arkansas will draw 100% of the state match for a capitalization grant first and then draw 100% of the Federal funds for that capitalization grant (less the set-asides). This is because Arkansas is prohibited from disbursing State Match in any of the forms used for Additional Subsidization. As long as federal funds are required to be spent on Additional Subsidization, Arkansas will need this variance in each Cap Grant. VIII. Capitalization Grant Programs and Amounts Requested Set-aside Strategy: The SDWA allows each state to set aside up to 31 percent of its federal capitalization grant to support various drinking water programs including administration, technical assistance, state program management and special activities. We plan to use 29% of the set-asides from the SFY 2013 grant. We have increased our spending rate in order to modernize the program through data collection contracts, software updates, state laboratory equipment maintenance, etc. This modernization process will improve the efficiency of the overall program and assist in the reduction of our un-liquidated obligations. We have and will continue to request set-asides for nonroutine investigative monitoring, such as the UCMR and LT2ESWTR source monitoring, and for updating our Source Water Assessment and Protection Plan. We will transfer portions of older set-aside funding as it is determined not to be needed back to the DWSRF loan account in order to maximize public health protection potential and minimize un-liquidated obligations. 15

19 A. Administration of the DWSRF Program Max Allowed: 4% Taken from FFY2013 Allotment: 4% ($509,720) The Water Division has the responsibility of managing the DWSRF program and will use the funds allocated to this set-aside program to defray the administrative costs associated with managing the program. Administration of the DWSRF program includes $458,253 for the 2012 and $509,720 for the 2013 allotment. A total of $967,973 available to be used by the Water Division. B. Small Systems Technical Assistance Max Allowed: 2% Taken from FFY2013 Allotment: 0% ($254,860) Reserved ADH uses these funds to provide assistance to small water systems in assessing and implementing capacity development which will identify individual water system needs, provide corrective action plans addressing identified deficiencies (goal 25), and provide technical assistance in correcting these deficiencies (goal 1500 man-hours). A mix of the 2010, 2011 and 2012 cap grant allotments will be used in SFY Small Systems Technical Assistance will be funded under the Capacity Development activities of the Local Assistance Set Aside. Currently all of the available funds under the Small Systems Technical Assistance (TA) Set Aside from the 2008 grant for $204,580, the 2009 ARRA grant for $489,700, the 2009 grant for $204,580, the 2010 grant for $210,780, the 2011 grant funds of $285,040 and the 2012 grant funds of $271,640. We will also reserve the entire 2013 SSTA allotment funds of $254,860 for future use as well. A total of $1,921,180 has been reserved for future use by the Engineering section. C. State Program Management Program Max Allowed: 10% Taken from FFY2013 Allotment: 10% ($1,274,300) The remaining balances of the allotments will be used to enable the ADH Engineering Section to continue to operate its Public Water Supply Supervision Program activities to insure compliance with requirements of the Safe Drinking Water Act. Funds will be used to support full time employees and related expenses including such items as salary, fringe, indirect costs, travel, training, office supplies, PC/LAN/GIS equipment and upgrades, and similar routine costs. Day to day activities will include such activities as sanitary surveys (goal 250), engineering plan reviews (goal 1200), complaint investigations, compliance tracking and grading, and technical assistance in a variety of forms to water systems, administrative activities, and other activities. ADH anticipates using a mix of the 2010 and 2012 cap grant allotments in SFY

20 State Program Management includes funds from the 2009 ARRA grant for $2,448,500 (reserved), the 2009 grant for $400,000 (reserved), the 2010 grant for $1,313,978 ($1,553,900 was available and $500,000 reserved), the 2011 grant for $1,425,200 (reserved), the 2012 grant for $1,358,200 ($508,200 available and $850,000 reserved) and the 2013 allotment of $1,274,300 to be used by the Engineering Section. A total of $8,720,178 funds are available for future use by the Engineering department. Of this total $5,623,700 is reserved for future use by the Engineering section. D. Wellhead Protection Program Max Allowed: 5% Taken from FFY2013 Allotment: 5% ($637,150) ADH uses these funds to provide the necessary staff resources and support to enable the Section to continue implementation and expansion of its wellhead protection program and to insure an updated and well-maintained GIS database system. Activities will typically include such items as delineation of wellhead protection areas, assistance to public water systems in well sitting, aquifer identification and recommended construction features, inventories for sources of contamination in wellhead areas, hydrologic sensitivity assessments of ground water sources, public outreach efforts on the importance of wellhead protection, and other activities. A mix of the 2009 and 2010 cap grant allotments will be used in SFY Wellhead Protection Program includes funds from the 2009 grant for $210,687, the 2010 grant for $1,026,950 and the 2013 allotment for $637,150 to be used by the Engineering Section. These funds were not requested from the 2011 and 2012 grants. A total of $1,874,787,000 funds are available for use by the Engineering section. E. Capacity Development Program Max Allowed: 10% Taken from FFY2013 Allotment: 10% ($1,274,300) ADH uses these funds to accomplish the overall objective under this set-aside which is to provide a variety of technical assistance and public education activities, which will help to insure continued sustainability and performance of public water systems in the State. Activities to be accomplished under this set-aside include such items as training and technical assistance to water systems in drafting CCRs (goal 711), water operator training and certification, publish and disseminate an informative quarterly newsletter (goal 1300 copies) for operators and other interested parties, a coordinated review of and protection from proposed point and non-point discharges (goal 600 miscellaneous permits) into sources of drinking water, provide assistance to water systems in developing local source water protection plans, participation in EPA s Area Wide Optimization Program efforts, conducting Comprehensive Performance Evaluations at water systems, and other activities. This effort will require full time employees and associated expenses. A mix of the 2010 and 2011 cap grant allotments will be used in SFY

21 Capacity Development Strategy includes funds from the 2010 grant for $ , the 2011 grant for $1,425,200, the 2012 grant for $1,358,200 and the 2013 allotment for $1,274,300 to be used by the Engineering Section. A total of $4,892,660 funds are available for use by the Engineering section. Detailed information pertaining to set-aside activities is located in Chart 1. IX. Small System Assistance Arkansas is required to allocate a minimum of 15% of the total funds available each year to funding small systems. Small systems are defined as systems that regularly serve 10,000 or fewer persons. In Arkansas there are approximately 711 Public Water Systems (PWS). Of those systems, approximately 48 serve a population of over 10,000 people and 663 serve a population of 10,000 or less. Arkansas has worked hard with the small systems to help them meet all of the regulatory requirements of the DWSRF program. However, over the last few years, the small systems have found the DWSRF program to be slow and cumbersome and have looked elsewhere for funding. By working with applicants, the Water Division continues to be able to interest small systems in the program as shown in Chart 5-2 for SFY We expect to sign Bond Purchase Agreements (Binding Commitments) on two systems of which are to small systems. Chart 5-1 has information on which projects are designated as small systems. Arkansas is required to demonstrate that at least 15% of the funds are used for small systems. In SFY 2014, the cumulative calculation looks like this: Cumulative Loans $ 193,012,300 Cumulative Small Systems $ 89,446,000 Percentage of Small System BCs 46.34% Arkansas is committed to continually modifying the DWSRF program in an effort to make the program more attractive to small systems. We continue to streamline the application process and shorten the time for planning and design work. ANRC has ongoing marketing plans at various conferences and meetings describing the benefits of the RLF program available to cities and communities. As always, we evaluate the need to lower the interest rates to cities that request funding. Our goal is to provide a subsidy without harming the program in the long term. X. Capacity Assessment The SDWA requires that a public water system applying for a DWSRF loan must show that it has the technical, financial and managerial capacity to ensure compliance. If a system does not have adequate capacity, assistance may only be provided if it will help the system to achieve capacity. The goal of this requirement is to ensure that DWSRF assistance is not used to create or support non-viable systems. 18

22 A. Technical Capacity To demonstrate technical capacity, DWSRF loan applicants must show that drinking water sources are adequate, that the system s source, treatment, distribution and storage infrastructure are adequate and that personnel have the technical knowledge to efficiently operate and maintain the system. As part of reviewing a loan application, ADH will review the system s records to assure that the system is being properly operated and maintained. The water system must not have outstanding water compliance problems unless the DWSRF project is intended to correct those problems. The engineering reports, plans, and specifications for the proposed DWSRF-funded project and the system s technical capacity will all be evaluated during the loan application process. B. Financial Capacity To demonstrate financial capacity, the applicant must show that the system has sufficient revenues to cover necessary costs and demonstrate credit worthiness and adequate fiscal controls. ANRC will review the applicant s Self-Assessment Worksheets, the project budget, annual financial reports, and other financial information to ensure adequate financial capacity of the applicant. C. Managerial Capacity To demonstrate managerial capacity, the water system must have personnel with expertise to manage the entire water system operation. ADH will review the applicant s managerial capacity through supporting documentation to assure that management is involved in the day to day supervision of the water system, is responsive to all required regulations, is available to respond to emergencies and is capable of identifying and addressing all necessary capital improvements and assuring financial viability. The water system must have a qualified water operator in accordance with the state s operator certification program. After reviewing the water system s technical and managerial capacity, ADH sends a letter to the application submitter and ANRC stating whether the system is eligible to be placed on the Priority List to receive DWSRF assistance. XI. Transfer Process Arkansas is considering transferring funds from Drinking Water Revolving Loan Funds to Clean Water RLF. Arkansas is reserving the authority to transfer up to 33 percent or $4,200,000 of the DWSRF 2011, 2012, 2013 federal capitalization grant to the 2013 CWSFR capitalization grant. These funds will be transferred from Drinking Water construction to Clean Water construction. See chart 9-1 for more information XII. Cross-Collateralization Process The Division implemented a system for leveraging bonds and part of that system is cross-collateralization. The Division is not planning on leveraging this fiscal year. 19

23 XIII. Public Comment The Division addresses this requirement in Appendix B titled Public Notices and Comments. The Division received no public comments. XIV. Audits and Reporting Arkansas s Intended Use Plans and Annual Reports along with the evaluation or business case for Green Project Reserve projects will be posted on our website: An independent audit, and single audit (as required), will be conducted by an outside CPA firm annually. Project milestones and information are reported through EPA s Drinking Water Project Benefits Reporting database (PBR) and the Federal Funding Accountability and Transparency Act (FFATA) Requirement. XV. Intended Use Plan Amendment Procedures Revisions to this IUP that are determined significant will require Public Notice and EPA notification and approval. Revisions to this IUP which are deemed to be insignificant shall be made by the Division with notification to EPA. Any changes in the project funding list shall be in accordance with procedures provided in the DWSRF Priority System and List. 20

24 Charts Chart 1 SUMMARY OF FUNDING FOR OPEN SRF CAPITALIZATION GRANT SET-ASIDES Chart 2 SDWF CASH FLOW DIAGRAM Chart 3 SDWF SOURCES AND USES Chart 3-1 ULO Analysis Chart 4-1 SDWF COMPARISON OF GRANT PAYMENTS, STATE MATCH AND SET-ASIDES Chart 4-2 SDWF REQUIRED BINDING COMMITMENTS AND ACTUAL BINDING COMMITMENTS Chart 5-1 SDWF ACTUAL BINGING COMMITMENTS Chart 5-2 SDWF PROJECTED BINDGING COMMITMENTS Chart 6-1 SWDF ACTUAL DISBURSEMENT SCHEDULE Chart 6-2 SWDF PROJECTED DISBURSEMENT SCHEDULE Chart 7-1 FUNDABLE PROJECT PRIORITY LIST Chart 8-1 thru 8-9 CAPACITY ANALYSIS Chart 9 TRANSFER PROCESS 21

25 Chart 1 SRF Grant Year 2007* 2008*^ Summary of Funding for open SRF Capitalization Grant Set-Asides % of Total Total Total Total Expended Remaining Grant Expense Expense Set-Aside Grant Available Reserved Budgeted To Date Balance Start Date Begin Date End Date Admin 4% $ 413,320 $ - $ 413,320 $ 413,320 $ - Jul-09 Jan-10 SPM 10% $ 1,033,300 $ - $ 1,033,300 $ 1,033,300 $ - Jul-10 Sep-11 TA 2% $ 206,660 $ - $ 206,660 $ 206,660 $ - Oct-10 Jan-12 WHP 5% $ 619,980 $ - $ 619,980 $ 516,650 $ 103,330 May-11 May-12 Cap Dev 10% $ 929,970 $ - $ 929,970 $ 1,033,300 $ (103,330) Jul-10 Jul-11 Total 27% $ 3,203,230 $ - $ 3,203,230 $ 3,203,230 $ (0) Jul-10 May-12 Admin 4% $ 409,160 $ - $ 409,160 $ 409,160 $ - Dec-09 Sep-10 SPM 10% $ 1,022,900 $ - $ 1,022,900 $ 1,022,900 $ - Aug-11 Aug-12 TA 2% $ 204,580 $ 204,580 $ - $ - $ - N/A N/A 10/1/2009 WHP 5% $ 613,740 $ - $ 613,740 $ 511,450 $ 102,290 Apr-12 Jan-13 9/30/2013 Cap Dev 10% $ 920,610 $ - $ 920,610 $ 1,022,900 $ (102,290) Jun-11 Feb-12 Total 27% $ 3,170,990 $ 204,580 $ 2,966,410 $ 2,966,410 $ - Jun-11 Jan-13 Admin 4% $ - $ - $ - $ - $ - N/A N/A SPM 10% $ 2,448,500 $ 2,448,500 $ - $ - $ - N/A N/A ARRA 09 TA 2% $ 489,700 $ 489,700 $ - $ - $ - N/A N/A 2/17/2009 WHP 0% $ - $ - $ - $ - $ - N/A N/A 9/30/2011 Cap Dev 0% $ - $ - $ - $ - $ - N/A N/A 2009 Total 12% $ 2,938,200 $ 2,938,200 $ - $ - $ - N/A N/A Admin 4% $ 409,160 $ - $ 409,160 $ 409,160 $ - May-11 Nov-11 SPM 10% $ 1,022,900 $ 400,000 $ 622,900 $ 622,900 $ - Jul-12 Jan-13 TA 2% $ 204,580 $ 204,580 $ - $ - $ - N/A N/A 10/1/2010 WHP 5% $ 511,450 $ - $ 511,450 $ 300,763 $ 210,687 Dec-12 Sep-13 Cap Dev 10% $ 1,022,900 $ - $ 1,022,900 $ 1,022,900 $ - Jan-12 Sep-12 Total 27% $ 3,170,990 $ 604,580 $ 2,566,410 $ 2,355,723 $ 210,687 Jan-12 Sep-13 Admin 4% $ 821,560 $ - $ 821,560 $ 821,560 $ - Sep-12 Dec-12 SPM 10% $ 2,053,900 $ 500,000 $ 1,553,900 $ - $ 1,553,900 Dec-12 Jul ^ TA 2% $ 410,780 $ 410,780 $ - $ - $ - N/A N/A 1/1/2011 WHP 5% $ 1,026,950 $ - $ 1,026,950 $ - $ 1,026,950 Jan-14 Dec-14 12/31/2014 Cap Dev 10% $ 2,053,900 $ - $ 2,053,900 $ 1,218,940 $ 834,960 Aug-12 Oct Total 27% $ 6,367,090 $ 910,780 $ 5,456,310 $ 2,040,500 $ 3,415,810 Aug-12 Dec-14 Admin 4% $ 570,080 $ - $ 570,080 $ - $ 570,080 Sep-13 Jul-14 SPM 10% $ 1,425,200 $ 1,425,200 $ - $ - $ - N/A N/A TA 2% $ 285,040 $ 285,040 $ - $ - $ - N/A N/A 3/1/2012 WHP 5% $ 712,600 $ - $ - $ - $ - N/A N/A Cap Dev 10% $ 1,425,200 $ - $ 1,425,200 $ - $ 1,425,200 Sep-13 Jul-14 Total 27% $ 4,418,120 $ 1,710,240 $ 1,995,280 $ - $ 1,995,280 Sep-13 Jul Grant End Date 10/1/2008 9/30/2012 9/30/2014 2/28/2016

26 Admin 4% $ 543,280 $ - $ 543,280 $ - $ 543,280 SPM 10% $ 1,358,200 $ 850,000 $ 508,200 $ - $ 508,200 Jun-14 Nov TA 2% $ 271,640 $ 271,640 $ - $ - $ - N/A N/A 7/1/2012 WHP 5% $ 679,100 $ - $ - $ - $ - N/A N/A Cap Dev 10% $ 1,358,200 $ - $ 1,358,200 $ - $ 1,358,200 Jun-14 May Current Balance Totals** Total 27% $ 4,210,420 $ 1,121,640 $ 2,409,680 $ - $ 2,409,680 Jun-14 Nov-15 Admin 4% $ 509,720 $ - $ 509,720 $ - $ 509,720 SPM 10% $ 1,274,300 $ - $ 1,274,300 $ - $ 1,274,300 Jun-14 Nov-15 TA 2% $ 254,860 $ 254,860 $ - $ - $ - N/A N/A 7/1/2013 WHP 5% $ 637,150 $ - $ 637,150 $ - $ 637,150 N/A N/A 6/30/2017 Cap Dev 10% $ 1,274,300 $ - $ 1,274,300 $ - $ 1,274,300 Jun-14 May-16 Total 27% $ 3,950,330 $ 254,860 $ 3,695,470 $ - $ 3,695,470 Jun-14 Nov-15 Total % of Total Total Total Total Expended Remaining Set-Aside Grant Available Reserved Budgeted To Date Balance Admin $ 3,676,280 $ - $ 3,676,280 $ 2,053,200 $ 1,623,080 SPM $ 11,639,200 $ 5,623,700 $ 6,015,500 $ 2,679,100 $ 3,336,400 TA $ 2,327,840 $ 2,121,180 $ 206,660 $ 206,660 $ - WHP $ 4,800,970 $ - $ 3,409,270 $ 1,328,863 $ 2,080,407 Cap Dev $ 8,985,080 $ - $ 8,985,080 $ 4,298,040 $ 4,687,040 Total $ 31,429,370 $ 7,744,880 $ 22,292,790 $ 10,565,863 $ 11,726,927 Grant Start Date Expense Begin Date Expense End Date 6/30/2016 Grant End Date * 2007 and 2008 workplans originally budgeted with 6% WHP and 9% Cap Dev. Revised workplans submitted to change to 5% WHP and 10% Cap Dev. ^ 2008 and 2010 workplans originally budgeted without full banking of TA set-aside ** ADH Summary ADH ULO Balances SFY 2011 SFY 2012 SFY 2013 SFY 2014 Start of SFY Balance Actual Actual Actual Projected 2014 Expenses Expenses Expenses Expenses 2011 $1,425,200 Admin $ 332,117 $ 102,293 $ 1,391,640 $ 1,103, $1,866,400 SPM $ 140,216 $ 51,691 $ 1,027,104 $ 1,049, $1,911,450 TA $ 817,862 $ 1,074,056 $ 8,669 $ 14, est. $8,014,416 WHP $ 30,828 $ 525,387 $ 772,648 $ 856, est. $6,680,745 Cap Dev $ 1,028,049 $ 1,390,473 $ 1,879,519 $ 2,225, est. $4,517,973 Total $ 2,349,071 $ 3,143,900 $ 5,079,580 $ 5,249, Proposed Total % of Total Total Total Total Expended Remaining Grant Expense Expense Set-Aside Grant Available Reserved Budgeted To Date Balance Start Date Begin Date End Date Admin 4% $ 560,000 $ 560,000 $ - $ 560,000 Jun-14 Nov-15 SPM 10% $ 280,000 $ 280,000 $ - $ - $ - N/A N/A TA 2% $ 1,400,000 $ 1,400,000 $ - $ 1,400,000 N/A N/A 7/1/2014 WHP 5% $ 700,000 $ 700,000 $ - $ 700,000 Jun-14 May-16 Cap Dev 10% $ 1,400,000 $ 1,400,000 $ - $ 1,400,000 Jun-14 Nov-15 Total 27% $ 4,340,000 $ 280,000 $ 4,060,000 $ - $ 4,060, Grant Start Date 6/30/2018

27 24

28 CHART 3 Arkansas Natural Resources Commission SDWF Estimated Sources and Uses SOURCES July 1, 2012 July 1, 2013 Thru June 30, 2013 Thru June 30, 2014 RLF Revolving Loan Funds $ 44,917, $ 54,049, Federal cap grant funds available: Construction (69%): $ - $ Cap Grant $ 6,388, $ Cap Grant $ 11,172, $ Cap Grant $ 9,047, Set-asides (31%): Open - Grants DWSRF Program administration $ 458, $ 509,720 State program management $ 1,822, $ 1,274,300 SS Technical assistance $ - $ - Local assistance and other State programs $ 4,855, $ 1,911,450 Set-Asides Sub-Total $ 7,136, $ 2,840, State Match 20% State match contributions $ 2,783, Interest earning on loans & investments $ 2,569, $ 2,247, Principal repayments $ 3,545, $ 3,902, TOTAL SOURCES OF FUNDS $ 78,512, $ 63,039, USES Total Loan Disbursements $ 18,643, $ 46,386, Set-aside Program's Disbursements DWSRF Administration $ 1,476, $ 700, State Program Management PWSS $ 1,027, $ 140, SS Technical Assistance $ 8, $ - Local Assistance/Other State Programs $ 2,652, $ 2,000, Total Set-Aside Disbursements $ 5,164, $ 2,840, Drinking Water Leveraged Bond Debt Service Principal $ - $ - Interest $ 654, $ 1,166, Resources carried forward to following year $ 54,049, $ 12,647, TOTAL USES OF FUNDS $ 78,512, $ 63,039, NOTE: TOTAL SOURCES OF FUNDS $ 78,512, $ 63,039, Less Undrawn Set-Aside Program funds brought forward $ 7,136, $ 7,136, Less Undisbursed funds for Loans Closed & Commission Approved $9,777, $ 5,987, FUNDS AVAILABLE FOR NEW LOANS $ 61,598, $ 49,915,

29 CHART 3-1 Funds to be Disbursed $210,687 Funds to be Disbursed $1,313,978 $1,026,950 $834,960 Capitalization Grant: FFY2009 Total ULOs: $ 210, Vehicle and Project(s) to Use Funds Projected Date the Projected Date of Funds Final Funds will begin to Disbursement or Transfer be Drawn 15% Local Assistance Program administration, technical assistance and education activities 4/1/2013 9/30/2014 regarding Wellhead Protection Program Capitalization Grant: FFY2010 Total ULOs: $ 3,175, Vehicle and Project(s) to Use Funds Projected Date the Projected Date of Funds Final Funds will begin to Disbursement or Transfer be Drawn SET-ASIDES (AR Department of Health) 10% State Program Management Assistance to the State Public Water System Supervision program 15% Local Assistance Program administration, technical assistance and education activities regarding Wellhead Protection Program Capacity Development, Technical Assistance and Operator Training activities to assist public water systems 9/1/ /31/2014 4/1/ /31/ /1/ /31/

30 Funds to be Disbursed $19,845,441 $308,553 $1,625,520 $1,700,000 $1,425,200 Funds to be Disbursed $1,772,712 $481,164 $1,700,000 $1,680,000 $458,253 $508,200 $1,358,200 Capitalization Grant: FFY2011 Total ULOs: $ 7,813, Vehicle and Project(s) to Use Funds Projected Date the Projected Date of Funds Final Funds will begin to Disbursement or Transfer be Drawn Project Loan Fund Contract of City of Jacksonville Water Works System Improvements 11/29/ /15/2014 Contract of Old Bella Vista - Principal Forgiveness for Distribution System 11/28/ /15/2014 Replacement Contract of City of Stephens Principal Forgiveness for Distribution System Replacement (Project is using GPR and 12/7/2012 4/15/2015 Additional Subsidy) Contract of City of Bradley Principal Forgiveness for Distribution System 5/10/ /15/2015 Replacement 15% Local Assistance Capacity Development, Technical Assistance and Operator Training 4/1/2012 4/30/2014 activities to assist public water systems Capitalization Grant: FFY2012 Total ULOs: $ 13,496, Vehicle and Project(s) to Use Funds Projected Date the Projected Date of Funds Final Funds will begin to Disbursement or Transfer be Drawn Project Loan Fund Contract of Central Arkansas Water #2 - Highway 10 Water Main Extension for 7/22/ /15/2013 Wye Mountain Contract of Wye Mountain WFB - New BS Transmission Main to CAW and New BS 11/15/ /15/2013 and Tank Contract of City of Chidester Principal Forgiveness for Distribution System 6/28/ /15/2015 Replacement Contract of City of Winthrop Principal Forgiveness for Distribution System Replacement (Project is using $1.4 8/29/ /15/2015 Million Additional Subsidy) 4% Administration Use for Drinking Water administrative expenses 4/1/2012 6/30/2013 SET-ASIDES (AR Department of Health) 10% State Program Management Assistance to the State Public Water System Supervision program 4/1/2012 4/30/ % Local Assistance Capacity Development, Technical Assistance and Operator Training 4/1/2012 4/30/2014 activities to assist public water systems 27

31 Funds to be Disbursed $5,000,000 $3,000,000 $1,200,000 $509,720 $1,274,300 $637,150 $1,274,300 Capitalization Grant: FFY2013 Total ULOs: $ 12,743, Vehicle and Project(s) to Use Funds Projected Date the Projected Date of Funds Final Funds will begin to Disbursement or Transfer be Drawn Project Loan Fund Contract of City of Scranton Loan for Transmission Facilities 6/30/ /15/2015 Contract of City of Beebe #4-For Distribution System Replacement 5/15/2013 4/15/2015 Contract of City of Wilton Principal Forgiveness for Distribution System Replacement (Project is using $1 Million 8/14/ /15/2015 Additional Subsidy) 4% Administration Use for Drinking Water administrative expenses 7/1/2013 4/30/2014 SET-ASIDES (AR Department of Health) 10% State Program Management Assistance to the State Public Water System Supervision program 7/1/2014 6/30/ % Local Assistance Program administration, technical assistance and education activities 7/1/2014 6/30/2017 regarding Wellhead Protection Program Capacity Development, Technical Assistance and Operator Training 7/1/2014 6/30/2017 activities to assist public water systems Capitalization Grants: FFY Total ULOs (open grants - Construction and Admin): Total construction Loans to disburse Amount of loans to disburse (Over)/Under ULOs Total ULOs (Set-Asides): $ 37,439, ($45,312,687) $ (7,872,798.85) $9,863, Note: Funds for SSTA w ere not listed because they w ere reserved. Please see pages in the SFY14 IUP for more details. 28

32 Chart 4-1 SDWF Comparison of Grant Payments, State Match and Set-Asides (State Fiscal Year) SFY Quarter State Match Total Payment 2008 GRANT Total Payment 2009 GRANT 2010 Grant Total Payment Total Payment Grant Payment - These Grants Set-Asides Loans Set-Asides Loans Set-Asides Loans Set-Asides Loans Jul/Sep 1 Oct/Dec 2 516, Jan/Mar 3 516, Apr/Jun 4 516, Jul/Sep 1 516, Oct/Dec 2 2,045,800 2,557, ,602 1,815,648 2,557, ,602 1,815,648 Jan/Mar 3 2,557, ,602 1,815,648 2,557, ,602 1,815,648 Apr/Jun 4 2,557, ,603 1,815,648 2,557, ,603 1,815,648 Jul/Sep 1 2,045,800 2,557, ,603 1,815,648 2,557, ,602 1,915,647 5,114,501 1,383,205 3,731,295 Oct/Dec 2 2,557, ,602 1,915,647 2,557, ,602 1,915,647 Jan/Mar 3 2,557, ,603 1,915,648 2,557, ,603 1,915,648 Apr/Jun 4 2,053,900 2,557, ,603 1,915,648 10,269,500 2,728,155 7,541,345 12,826,750 3,369,758 9,456,993 Jul/Sep 1 Oct/Dec 2 2,053,900 10,269,500 2,728,155 7,541,345 10,269,500 2,728,155 7,541,345 Jan/Mar 3 Apr/Jun 4 TOTALS 10,266,040 10,229,000 2,966,410 7,262,590 10,229,000 2,566,410 7,662,590 20,539,000 5,456,310 15,082,690 40,997,000 10,989,130 30,007, GRANT 2012 GRANT 2013 GRANT Grant Payment - These Grants SFY Quarter State Match Total Total Total Total Payment Set-Asides Loans Payment Set-Asides Loans Payment Set-Asides Loans Payment Set-Asides Loans Previous Grants Totals 23,666, ,438,300 33,289,993 78,148, Apr/Jun Jul/Sep Oct/Dec Jan/Mar 3 Apr/Jun 4 2,783,400 7,126, ,640 6,128,360 6,791,000 1,204,840 5,586,160 13,917,000 2,202,480 11,714,520 Jul/Sep 1 2,070,800 3,563, ,820 3,064,180 6,791,000 1,204,840 5,586,160 10,354,000 1,703,660 8,650, Oct/Dec 2 712,600 3,563, ,820 3,064,180 3,563, ,820 3,064,180 Jan/Mar Apr/Jun 4 Jul/Sep Oct/Dec 2 700,000 3,185, ,868 2,261,883 3,185, ,868 2,261,883 Jan/Mar 3 700,000 3,185, ,868 2,261,883 3,185, ,868 2,261,883 Apr/Jun 4 700,000 3,185, ,867 2,261,882 3,185, ,867 2,261,882 Jul/Sep 1 700,000 3,185, ,867 2,261,882 3,185, ,867 2,261, Oct/Dec 2 Jan/Mar 3 Apr/Jun 4 TOTALS 39,499,480 14,252,000 1,995,280 12,256,720 13,582,000 2,409,680 11,172,320 12,743,000 3,695,470 9,047, ,012,300 52,379, ,632,747 29

33 Chart 4-2 SFY Quarter SDWF Comparison of Grant Payments, Required Binding Commitments, and Actual Binding Commitments State Match Qtrly Grant Payment - All Grants Cum. Grant Payment - All Grants * Binding Cum. Bind. Binding Cum. Bind. % Total Total Commit. Commit. Commit. Commit. Actual/ Payment Set-Asides Loans Payment Set-Asides Loans Required Required Actual Actual Required Jul/Sep 1-2,583, ,823 1,782, ,105,300 30,086,763 71,018,537 2,299,137 91,239,597 5,000, ,349, Oct/Dec 2 516,660 2,583, ,808 1,782, ,688,550 30,887,571 72,800,980 2,299,093 93,538,690 2,420, ,769, Jan/Mar 3 516,660 2,583, ,808 1,782, ,271,800 31,688,378 74,583,422 2,299,093 95,837, ,769, Apr/Jun 4 516,660 2,583, ,808 1,782, ,855,050 32,489,186 76,365,865 2,299,093 98,136, ,769, Jul/Sep 1 516,660 2,583, ,808 1,782, ,438,300 33,289,993 78,148,307 2,299, ,435, , ,269, Oct/Dec 2 2,045,800 2,557, ,602 1,815, ,995,550 34,031,595 79,963,955 2,327, ,763,064 17,765, ,034, Jan/Mar 3-2,557, ,602 1,815, ,552,799 34,773,197 81,779,602 2,327, ,090, ,034, Apr/Jun 4-2,557, ,603 1,815, ,110,050 35,514,800 83,595,250 2,327, ,417, , ,534, Jul/Sep 1 2,045,800 5,114,501 1,383,205 3,731, ,224,550 36,898,005 87,326,544 4,754, ,171,454 14,250, ,784, Oct/Dec 2-2,557, ,602 1,915, ,781,800 37,539,607 89,242,191 2,427, ,598, ,784, Jan/Mar 3-2,557, ,603 1,915, ,339,050 38,181,210 91,157,839 2,427, ,025,649 6,500, ,284, Apr/Jun 4 2,053,900 12,826,750 3,369,758 9,456, ,165,800 41,550, ,614,832 12,022, ,047, ,284, Jul/Sep 1-142,165,800 41,550, ,614, ,047,992 4,000, ,284, Oct/Dec 2 2,053,900 10,269,500 2,728,155 7,541, ,435,300 44,279, ,156,177 9,595, ,643,237 27,050, ,334, Jan/Mar 3-152,435,300 44,279, ,156, ,643, ,334, Apr/Jun 4 2,783,400 13,917,000 2,202,480 11,714, ,352,300 46,481, ,870,697 14,497, ,141,157 2,310, ,644, Jul/Sep 1 2,070,800 10,354,000 1,703,660 8,650, ,706,300 48,185, ,521,037 10,721, ,862, ,644, Oct/Dec 2 712,600 3,563, ,820 3,064, ,269,300 48,684, ,585,217 3,776, ,639,077 7,131, ,775, Jan/Mar ,269,300 48,684, ,585, ,639, ,775, Apr/Jun ,269,300 48,684, ,585, ,639,077 9,700, ,475, Jul/Sep 1-180,269,300 48,684, ,585, ,639, ,475, Oct/Dec 2 637,150 3,185, ,868 2,261, ,455,051 49,607, ,847,100 2,899, ,538,110 4,580, ,055, Jan/Mar 3 637,150 3,185, ,868 2,261, ,640,802 50,531, ,108,983 2,899, ,437, ,055, Apr/Jun 4 637,150 3,185, ,867 2,261, ,826,551 51,455, ,370,865 2,899, ,336, ,055, Jul/Sep 1 637,150 3,185, ,867 2,261, ,012,300 52,379, ,632,747 2,899, ,235, ,055, Oct/Dec ,012,300 52,379, ,632, ,235, ,055, Jan/Mar ,012,300 52,379, ,632, ,235, ,055, Apr/Jun ,012,300 52,379, ,632, ,235, ,055, *Note: Required B/C amount is the total of state match, Federal grant payments not allocated to TOTALS 39,248, ,012,300 52,379, ,632,747 set-asides and any unspecified set-asides transferred back to the loan account lagged by one year. 30

34 Chart 5-1 SDWF DWSRF Binding Commitments (BC) Project Name/ EQU / Binding Actual and Projected Binding Commitments Communities Special NON-EQU Commitment State Fiscal Year 2013 Prior to Served Status PROJ Date QTR 1 QTR 2 QTR 3 QTR 4 ANNUAL SFY 2013 Jul-Sept 12 Oct-Dec 12 Jan-Mar 13 Apr-Jun 13 TOTALS 1 Old Bella Vista D, S E 10/23/12 $0 $600,000 $0 $0 $2,100,000 2 Stephens D, S E 11/05/12 $0 $3,000,000 $0 $0 $3,000,000 3 Paron-Owensville Water Authority D, S E 11/27/12 $0 $2,200,000 $0 $0 $2,200,000 4 McNeil D, S E 12/07/12 $0 $1,331,000 $0 $0 $1,331,000 5 Beebe#4 D, S E 04/04/13 $0 $0 $0 $3,000,000 $3,000,000 8 Bradley D,S E 06/13/13 $0 $0 $0 $1,700,000 $1,700,000 6 Chidester Waterworks D, S E 06/14/13 $0 $0 $0 $1,700,000 $1,700,000 7 Scranton D, S E 06/19/13 $0 $0 $0 $5,000,000 $5,000,000 CUMULATIVE TOTALS 1 DWSRF BC Quarterly Totals $0 $7,131,000 $0 $11,400,000 $18,531,000 2 DWSRF BC Cumulative Totals $197,644,011 $197,644,011 $204,775,011 $204,775,011 $216,175,011 $216,175,011 $197,644,011 3 SSAF BC Quarterly Totals Less Program Admin (ADH) $0 $0 $0 $0 $0 $0 $0 4 Program Admin BC Quarterly Totals $0 $0 $0 $0 $0 $0 $0 5 SDWF BC Quarterly Commitments ( ) $0 $7,131,000 $0 $11,400,000 $18,531,000 $216,175,011 6 SDWF BC Cumulative Commitments $197,644,011 $197,644,011 $204,775,011 $204,775,011 $216,175,011 7 * Required Binding Commitments - Quarterly $0 $9,595,245 $0 $14,497,920 $24,093,165 8 * Required Binding Commitments - Cumulative $153,141,157 $153,141,157 $162,736,402 $162,736,402 $177,234,322 $177,234,322 DWSRF BC Cumulative Totals 9 as a % of Required BC Cumulative ( 2 / 8 ) 129% 129% 126% 126% 122% 10 DWSRF BC Quarterly Totals $0 $7,131,000 $0 $11,400,000 $18,531, DWSRF BC Cumulative Totals $197,644,011 $197,644,011 $204,775,011 $204,775,011 $216,175,011 $216,175, Cumulative Grant Amount Allocated to Loans $119,870,697 $128,521,037 $131,585,217 $131,585,217 $131,585,217 $131,585,217 DWSRF BC Cumulative Totals 13 as a % of Cum. Grant Amount Allocated to Loans (11 / 12) 165% 154% 156% 156% 164% *Note: Required B/C amount is the total of state match, Federal grant payments not allocated to set-asides and any unspecified set-asides transferred back to the loan account lagged by one year. **Note the Binding Commitment amounts are Commission Approved Amounts NOT Project Costs 31 Special Status D = Disadvantaged Community S = Small System

35 Chart 5-2 SDWF DWSRF Binding Commitments (BC) Project Name/ EQU / Binding Projected Binding Commitments Communities Special NON-EQU Commitment State Fiscal Year 2014 Prior to Served Status PROJ Date QTR 1 QTR 2 QTR 3 QTR 4 ANNUAL SFY 2014 Jul-Sept 13 Oct-Dec 13 Jan-Mar 14 Apr-Jun 14 TOTALS 1 City of Winthrop D,S E TBD $1,680,000 $0 $0 $0 $1,680,000 2 Wilton Waterworks D,S E TBD $1,200,000 $0 $0 $0 $1,200,000 CUMULATIVE TOTALS 1 DWSRF BC Quarterly Totals $2,880,000 $0 $0 $0 $2,880,000 2 DWSRF BC Cumulative Totals $216,175,011 $219,055,011 $219,055,011 $219,055,011 $219,055,011 $219,055,011 3 SSAF BC Quarterly Totals Less Program Admin (ADH) $0 $952,736 $952,736 $952,736 $952,736 $3,810,943 $3,810,943 4 Program Admin BC Quarterly Totals $0 $436,353 $436,353 $436,353 $436,353 $1,745,413 $1,745,413 5 SDWF BC Quarterly Commitments ( ) $4,269,089 $1,389,089 $1,389,089 $1,389,089 $8,436,356 $224,611,367 6 SDWF BC Cumulative Commitments $216,175,011 $220,444,100 $221,833,189 $223,222,278 $224,611,367 7 * Required Binding Commitments - Quarterly $2,299,093 $2,275,953 $2,275,953 $2,275,953 $9,126,950 8 * Required Binding Commitments - Cumulative $177,234,322 $179,533,415 $181,809,367 $184,085,320 $186,361,272 $186,361,272 DWSRF BC Cumulative Totals 9 as a % of Required BC Cumulative ( 2 / 8 ) 122% 122% 120% 119% 118% 10 DWSRF BC Quarterly Totals $2,880,000 $0 $0 $0 $2,880, DWSRF BC Cumulative Totals $216,175,011 $219,055,011 $219,055,011 $219,055,011 $219,055,011 $219,055, Cumulative Grant Amount Allocated to Loans $131,585,217 $131,585,217 $133,847,100 $136,108,983 $138,370,865 $138,370,865 DWSRF BC Cumulative Totals 13 as a % of Cum. Grant Amount Allocated to Loans (11 / 12) 164% 166% 164% 161% 158% *Note: Required B/C amount is the total of state match, Federal grant payments not allocated to set-asides and any unspecified set-asides transferred back to the loan account lagged by one year. **Note the Binding Commitment amounts are Commission Approved Amounts NOT Project Costs Special Status D = Disadvantaged Community S = Small System 32

36 Chart 6-1 SDWF ACTUAL DISBURSEMENTS SFY 2013 PREVIOUS QTR 1 QTR 2 QTR 3 QTR 4 ANNUAL CUMULATIVE DISB. July - Sept Oct - Dec Jan - Mar Apr - June TOTALS TOTALS LOAN DISBURSEMENTS Cash Draws From EPA for Loans 3,944, ,558 4,621,879 4,202,667 13,624,690 Cum Cash Draws from EPA 105,105, ,049, ,905, ,527, ,729, ,729,971 State Share of Loan Disbursements 1,108,014 3,680, ,624-5,019,045 Cum. State Share of Ln. Disbursements 35,179,417 36,287,431 39,967,839 40,198,462 40,198,462 40,198,462 Loan Repayments Fund Cum Loan Repayments Fund 17,933,752 17,933,752 17,933,752 17,933,752 17,933,752 17,933,752 Total RLF Loan Disbursements 5,052,600 4,535,965 4,852,503 4,202,667 18,643,735 Cum. RLF Loan Disbursements 158,218, ,271, ,807, ,659, ,862, ,862,185 Cum ACH Draws as a % of Cum. Disb. 67% 65% 66% 67% ADMINISTRATION AND SET-ASIDE DISBURSEMENTS State Share Program Administration Program Administration (4%) 5,275, , ,107 1,476,667 6,752,519 State Program Management (10%)(PWSS) 12,002, , , , ,701 1,027,104 13,029,552 Small Systems Technical Assistance (2%) 2,214,013 6,015 2, ,669 2,222,682 Local Assistance and Other (15%) - - Source Water Protection D/A (10%) 1,255,880-1,255,880 Wellhead Protection 6,713,456 81, , , , ,648 7,486,104 Capacity Development 10,171, , , , ,788 1,879,519 12,050,714 Prog Admin. and Set-Aside Disbursements 5,164,606 Cum Adm. and Set-Aside Disb. 37,632,844 37,632,844 37,632,844 37,632,844 37,632,844 42,797,451 Cum ACH Draw as a % of Cum. Disb. 19% 19% 18% 18% 18% OUTSIDE REVOLVING LOAN FUNDS Outside RLF Funds Cum. Outside RLF 3,062,948 3,062,948 3,062,948 3,062,948 3,062,948 3,062,948 TOTAL DISBURSEMENTS: Cash Draw From EPA/ACH 3,944,586 1,677,118 4,621,879 4,857,774 15,101,357 Cum Cash Draw From EPA/ACH 110,381, ,325, ,002, ,624, ,482, ,482,490 State Share of Disbursements 1,108,014 3,680, ,624-5,019,045 Cum State Share of Disbursements 35,179,417 36,287,431 39,967,839 40,198,462 40,198,462 40,198,462 Loan Repayments Fund Cum Loan Repayments Fund 17,933,752 17,933,752 17,933,752 17,933,752 17,933,752 17,933,752 Outside RLF Funds Cum Outside RLF Share of Disbursements 3,062,948 3,062,948 3,062,948 3,062,948 3,062,948 3,062,948 Total Disbursements 5,052,600 5,357,525 4,852,503 4,857,774 20,120,402 Cum Total Disbursements 161,383, ,436, ,793, ,646, ,504, ,504,093 Cum EPA/ACH Draw as a % of Total 68% 69% 68% 68% 69% Federal EPA/ACH Available: 10,354,000 3,563, Cum Before ADM & RLF Disb. 166,352, ,706, ,269, ,269, ,269,300 Cum After ADM & RLF Disb. 55,971,167 62,380,581 64,266,463 59,644,584 54,786,810 33

37 Chart 6-2 PROJECTED DISBURSEMENTS SFY 2014 PREVIOUS QTR 1 QTR 2 QTR 3 QTR 4 ANNUAL CUMULATIVE DISB. July - Sept Oct - Dec Jan - Mar Apr - June TOTALS TOTALS LOAN DISBURSEMENTS Cash Draws From EPA for Loans 5,974,209 3,411,945 5,446,196 4,070,950 18,903,301 Cum Cash Draws from EPA 118,729, ,704, ,116, ,562, ,633, ,633,272 State Share of Loan Disbursements - 1,197, ,027 1,091, ,145 3,789,737 Cum. State Share of Ln. Disbursements 40,198,462 41,396,173 42,080,200 43,172,055 43,988,200 43,988,200 Loan Repayments Fund - 7,421,920 4,345,973 6,788,051 5,137,095 23,693,038 Cum Loan Repayments Fund 17,933,752 25,355,672 29,701,645 36,489,696 41,626,790 41,626,790 Total RLF Loan Disbursements - 14,593,840 8,441,945 13,326,102 10,024,189 46,386,077 Cum. RLF Loan Disbursements 176,862, ,456, ,897, ,224, ,248, ,248,262 Cum ACH Draws as a % of Cum. Disb. 70% 65% 64% 63% 62% ADMINISTRATION AND SET-ASIDE DISBURSEMENTS State Share Program Administration Program Administration (4%) 6,752, , , , , ,000 7,452,519 State Program Management (10%)(PWSS) 13,029,552 35,000 35,000 35,000 35, ,000 13,169,552 Small Systems Technical Assistance (2%) 2,222, ,222,682 Local Assistance and Other (15%) Source Water Protection D/A (10%) 1,255, ,255,880 Wellhead Protection 7,486, , , , , ,000 8,286,104 Capacity Development 12,050, , , , ,000 1,200,000 13,250,714 Adm. and Set-Aside Disbursements - 785, , , ,000 2,840,000 Cum Adm. and Set-Aside Disb. 42,797,451 43,582,451 44,217,451 44,902,451 45,637,451 45,637,451 Cum ACH Draw as a % of Cum. Disb. 19% 18% 17% 17% OUTSIDE REVOLVING LOAN FUNDS Outside RLF Funds 10,000 15,000 10,000 15,000 50,000 Cum. Outside RLF 3,062,948 3,072,948 3,087,948 3,097,948 3,112,948 3,112,948 TOTAL DISBURSEMENTS: Cash Draw From EPA/ACH 6,224,209 3,511,945 5,596,196 4,270,950 19,603,301 Cum Cash Draw From EPA/ACH 118,729, ,954, ,466, ,062, ,333, ,333,272 State Share of Disbursements - 1,197, ,027 1,091, ,145 3,789,737 Cum State Share of Disbursements 40,198,462 41,396,173 42,080,200 43,172,055 43,988,200 43,988,200 Loan Repayments Fund - 7,421,920 4,345,973 6,788,051 5,137,095 23,693,038 Cum Loan Repayments Fund 17,933,752 25,355,672 29,701,645 36,489,696 41,626,790 41,626,790 Outside RLF Funds - 10,000 15,000 10,000 15,000 50,000 Cum Outside RLF Share of Disbursements 3,062,948 3,072,948 3,087,948 3,097,948 3,112,948 3,112,948 Total Disbursements 14,853,840 8,556,945 13,486,102 10,239,189 47,136,077 Cum Total Disbursements 179,925, ,778, ,335, ,822, ,061, ,061,210 Cum EPA/ACH Draw as a % of Total 70% 64% 63% 62% 61% Federal EPA/ACH Available: - 3,185,751 3,185,751 3,185,749 Cum Before ADM & RLF Disb. 180,269, ,269, ,455, ,640, ,826,551 Cum After ADM & RLF Disb. 54,786,810 54,786,810 57,972,561 61,158,312 64,344,061 34

38 Chart Drinking Water Project Fundable Priority List No. Year Project Name Total Points PWS ID. Population Small System (Y/N) MHI Project Cost Est. Binding Commitment Date Estimated Loan Closing Date Estimated Construction Start Date Project Description Scranton ,100 YES $24, $5,974,000 6/19/2013 6/19/2013 7/1/ Bradley Waterworks YES $24, $1,533,711 6/13/2013 6/13/2013 7/8/ City of Winthrop YES $32, $1,633,098 8/1/2013 8/29/2013 9/11/ Beebe ,000 YES $40, $1,065,000 4/4/2013 5/29/2013 5/29/ Chidester Waterworks YES $28, $1,643,716 6/14/2013 6/28/2013 7/31/ Wilton Waterworks YES $30, $1,163,082 8/1/2013 8/14/2013 8/14/2013 Connection to the City of Clarksville - Transmission Facilities The existing water distribution system consists primarily of polyvinylchloride (PVC), galvanized and transite pipe. Recent studies have shown that the existing water distribution system is incurring a 29% water loss. The City proposes to replace 10,750 feet of six (6) inch water main, 8,500 feet of four (4) inch water main, 14,750 feet of two (2) inch water main along with associated appurtenances. When the improvements are complete the City expects to see a significant reduction in their unaccounted for water which should result in increased savings and revenues for the water department. With the replacement of their appurtenances the city s water distribution system will be up to standards for the next years. Distribution System Replacement To develop the necessary Lonoke White PWA water connector main. Replace the cast iron and galvanized pipe segments in the system (Water distribution System Improvements ) and eliminate dead end lines where practical. Distribution System Replacement Distribution System Replacement 35

39 Chart Drinking Water Project Fundable Priority List No. Year Project Name Term Interest Rate Green Identifier Green Project Reserve Amt GPR Category Sustainability Policy Principal Disadvantaged Forgiveness (Y/N) Amt Scranton 20 yrs 2.40% NA NA NA TBD NA YES SRF Only TBD SFY Bradley Waterworks 20 yrs 3.25% NA NA NA Fix it First $1,700,000 YES SRF Only TBD SFY City of Winthrop 20 yrs 2.25% Categorical $1,633,098 Water Efficiency Fix it First $1,400,000 YES SRF Only TBD SFY Beebe 20 yrs 2.25% NA NA NA TBD NA NO SRF Only TBD SFY Chidester Waterworks 20 yrs 2.40% Categorical $1,643,716 Water Efficiency Fix it First $1,700,000 YES SRF Only TBD SFY Wilton Waterworks 20 yrs 1.90% TBD TBD TBD TBD $1,000,000 YES SRF Only TBD SFY2011/SFY2012 Projects McNeil Waterworks City of Winthrop Chidester Waterworks Bradley Grand Totals Green Project Reserve Additional Subsidy 2011 Cap Grant Requirements: $14,252,000 Green $2,850,400 Addt'l Sub $4,275,600 No $0 Yes $479,300 Yes $1,400,000 Yes $1,400,000 Yes $1,643,716 Yes $1,700,000 No $0 Yes $696,300 Green $3,043,716 Addt'l Sub $4,275,600 Sources of Funding Federal Crosscutters (CE or FNSI) FFATA (Transparency Reporting) Status of Project ANRC Funding ANRC Funding ANRC Funding ANRC Funding ANRC Funding ANRC Funding Projects Bradley Old Bella Vista Wilton Waterworks Grand Totals 2012 Cap Grant Requirements: $13,582,000 Green $0 Addt'l Sub $2,716,400 No $0 Yes $1,003,700 No $0 Yes $600,000 No $0 Yes $1,000,000 Green $0 Addt'l Sub $2,603, Cap Grant Requirements: $12,743,000 Projects Grand Totals TBD TBD TBD Green $0 Addt'l Sub $2,548,600 TBD Yes TBD TBD Yes TBD TBD Yes TBD Green $0 Addt'l Sub $0 36

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49 CHART 9 Summary of Authority To Transfer Funds, Authority Reserved for the Future and Actual Funds Transferred Maximum State Amount Amount Amount Amount Available for Fiscal Available Reserved Transferred Transferred Future Year DWSRF Cap Grant for Transfer for Transfer To CWSRF From CWSRF Transfers Year Amount $ 14,252, $ 4,703, $ 4,703, $ - $ - $ $ 13,582, $ 4,482, $ 4,482, $ - $ - $ $ 12,743, $ 4,205, $ 4,205, $ - $ - $ - 46

50 Appendix A Priority Setting Procedures for Drinking Water State Revolving Loan Fund and Project Priority List Appendix B Public Notices and Comments Appendix C EPA Assurances 47

51 Appendix A Priority Setting Procedures for Drinking Water State Revolving Loan Fund Priority Points shall be used for ranking proposed drinking water projects for eligibility for funding from the Drinking Water State Revolving Loan Fund (Fund). The points system presented below will be used. A project otherwise determined to be eligible under the Fund may not receive funding for improvements that were not included in the original project for which priority points were assigned. The additional unranked improvements must rely on alternate funding sources for these improvements, or wait for the next funding cycle for a new point s assessment. Fundable projects proposing to omit specific improvements for which points were assigned must show that this will not compromise public health and will not otherwise impair the water system s capacity when compared to the original project. Acceptable downsized projects will be reassessed and re-ranked under the priority ranking system, possibly resulting in a lower priority status. 48

52 PRIMARY MCL VIOLATIONS FACTORS POINTS 1. Surface Water or Groundwater under the direct influence of surface water with no filtration Treatment technique violations, microbiological MCL violations a. Total points for first two violations 100 b. Points for additional violations after first two 5 c. Points for imminent violation of future regulation Acute Chemical Violations a. Total points for first two violations 100 b. Points for additional violations after first two 5 c. Points for imminent violation of future regulation New Service Areas for area(s) with contaminated private drinking water sources 100 a. Points for Microbial Contamination 100 b. Points for Acute Chemicals 50 c. Points for Other Chemicals 5. Chemical MCL Violations a. Total points for first two violations 50 b. Points for additional violations after first two 5 c. Points for imminent violation of future regulation 50 SOURCE VULNERABILITY FACTOR POINTS 1. Vulnerable to point or non-point upstream discharge a. Microbiological 25 b. Industrial, agricultural, or mineral 15 c. Unprotected watershed 15 CONSOLIDATION / INTERCONNECTION FACTOR POINTS 1. Consolidation with an existing system < 40 service connections , ,321-4, > 4, Interconnection with an existing system < 40 service connections , ,321-4, > 4,000 5 AFFORDABILITY FACTOR POINTS 1. Total Population Served: Service Connections < 1, Affordability Ratio 49

53 a) > 2.49 % 15 b) 2.0 % % 12 c) 1.5 % % 9 d) 1.0 % % 6 e) <1.0 % 3 OTHER DEFICIENCIES FACTOR POINTS 1. Secondary MCL violation Fluoridation start-up 5 3. Quantity deficiencies Continual/frequent outages 25 Peak demand/daily shortages 20 Peak demand/seasonal shortages 10 Peak demand/sporadic shortages 5 3. Design deficiencies Disinfection 10 Chemical Feed 8 Mixing 8 Clarification 8 Filtration 8 Storage 8 Distribution/low pressures 10 Distribution/deteriorated mains 8 Distribution/unaccounted for water 8 Treatment capacity 8 Intake structure 8 Well construction 10 BONUS POINTS POINTS 1. Board Member or City Council Training in the past 5 years Up-to-date Asset Management Plan 10 Eligibility for Priority Points Projects for public water systems shall not be eligible for points in any category unless they meet the requirements specified below for that category. Should two or more projects accumulate the same number of points, priority will be given beginning with the project serving the least population and moving to the project serving the next higher population, until all projects with that point total are prioritized. It should be noted that discretion will be used in the awarding of points in the following categories. If a public water system is accumulating violations due to negligence or inattention on the part of the system, points will not be awarded. The system must be taking reasonable actions to achieve compliance. 50

54 Primary MCL Violations Factors 1. Surface Water or Ground Water under the direct influence of surface water with inadequate filtration. Points will be awarded only for a water system that currently is required by the Safe Drinking Water Act to provide filtration, and the system does not have a filtration system that complies with the Safe Drinking Water Act regulations. In the case of consolidating systems where the project applicant does not qualify, but one of the consolidating systems does, then points will be awarded based on the consolidating system. If there are multiple consolidating systems within the same project which are SW or GWUDI, then an additional five (5) points will be awarded for each system after the first. 2. Treatment technique violations and microbiological MCL violations. Points will be awarded only for a water system that has had more than one treatment technique or microbiological MCL violation of the Safe Drinking Water Act during the eighteen months preceding the date of the most recent ranking questionnaire. Each microbiological MCL violation and treatment technique violation will be counted as an individual violation, even if they occur in the same month. Points can be awarded for multiple violations of the same type or in combination with other violation types, (e.g.; if a system had both a microbiological MCL and a treatment technique violation in the same month, they would get points for two violations in that month.). 2. A. One hundred (100) points total will be awarded for the first two (2) violations. 2. B. Five (5) points will be awarded for each additional violation. 2. C. Fifty (50) points may be awarded to a project whose purpose is to prevent a future NPDWS treatment technique or microbiological violation based upon promulgated EPA regulations or EPA regulations which are essentially final, but not yet promulgated. 3. Acute Chemical & Chemical MCL violations. Points will be awarded only for a water system that currently has contamination from a Safe Drinking Water Act regulated contaminant, or other chemical contaminant for which no MCL has been adopted, which presents an acute health risk to consumers, based on EPA standards, health advisories, or other peer reviewed health risk studies found acceptable to the Department. 3. A. One hundred (100) points will be awarded for the first two (2) violations. 51

55 3. B. Five (5) points will be awarded for each additional violation. 3. C. Fifty (50) points may be awarded to a project whose purpose is to prevent a future NPDWS violation based upon promulgated EPA regulations or EPA regulations which are essentially final, but not yet promulgated. 4. New Service Area for Area(s) with contaminated Private Drinking Water Sources. Points may be awarded for a project to provide public drinking water service to an unserved area provided that: 4. A. At least 10% of the private water sources in the project area are sampled at random for microbiological contamination and at least 50% of those samples are coliform positive; or 4. B. At least 10% of the private water sources in the project area are sampled at random for a regulated acute chemical contaminant and at least 50% of those samples exceed the Maximum Contaminant Level or Action Level specified by EPA; or 4. C. At least 10% of the private water sources in the project area are sampled at random for other chemical contaminants and at least 50% of those samples exceed the Maximum Contaminant Level or Action Level specified by EPA. 5. Chemical MCL Violations. Points will be awarded only for a water system that currently has contamination from a Safe Drinking Water Act regulated contaminant at a level which exceeds the MCL or Action Level specified by EPA, and has not already received points under Acute Chemical Violations. Each chemical MCL violation will be counted as an individual violation, even when multiple violations occur in the same reporting period. Points can be awarded for multiple violations of the same type (inorganic, organic, radiochemical, etc.) or in combination with other violation types, (e.g.; if a system had both an arsenic MCL and a barium MCL in the same reporting period, they would get points for two violations in that reporting period.). 5. A. Fifty (50) points will be awarded for the first two (2) violations. 5. B. Five (5) points will be awarded for each additional violation. 5. C. Fifty (50) points may be awarded to a project whose purpose is to prevent a future NPDWS violation based upon promulgated EPA regulations or EPA regulations which are essentially final, but not yet promulgated. 52

56 Source Vulnerability Factors 1. A. Source Vulnerable Due to Contamination from a Point or Non-point Source Discharge (with the potential to cause microbiological contamination). Points will be awarded only to a surface water source where there exists identifiable point or non-point discharges which can be documented to result in, or can potentially result in, instances where the raw water coliform concentrations exceed the limitations set forth in Section IX.A of the Rules and Regulations Pertaining to Public Water Systems, or otherwise cause significant microbiological contamination of the source water. 1. B. Source Vulnerable Due to Contamination from Industrial Operations. Points will be awarded for a water source where analyses indicate the occasional presence of hazardous chemicals from an industrial source. In the case of a water system utilizing a ground water source, points will be awarded when documentation is provided that a contaminant plume exists in the source aquifer and is approaching the wellhead. Source Vulnerable Due to Contamination from Agricultural Operations. Points will be awarded for a water source where analyses indicate the occasional presence of agricultural chemicals. Points will be awarded in the case of a water system utilizing a ground water source, only when analyses indicate the occasional presence of contaminants of agricultural origin in the source water or documentation of a contaminant plume in the source aquifer which is approaching the wellhead. Source Vulnerable Due to Potential Contamination from Oil, Gas, or Mineral Operations. Points will be awarded for a surface water source where analyses indicate the occasional presence of contaminants from oil, gas, or mineral operations. Points will be awarded for a ground water source where the recharge area contains oil, gas, or mineral operations that have caused a plume of contamination that is approaching the water supply wellhead. 1. C. Source with Inadequate Buffer Zone. Points will be awarded for a surface water source where the required 300-foot buffer zone required under the Arkansas Rules and Regulations Pertaining to Public Water Systems has not been obtained. Points will be awarded for a ground water source where the 100-foot radius buffer area zone required in these regulations has not been obtained. Consolidation/Interconnection Factor 1. Consolidation with an Existing System. Points will be awarded only for systems which agree to legally merge with another water system which is fully compliant with Safe Drinking Water Act water quality regulations or will become compliant as a result of the merger. In cases where multiple systems will consolidate, point assignments will be based upon the number of service connections of the smallest system. Extra points for additional consolidating systems under the same project will be assigned at a rate of ten percent (10%) of the original rate for each additional consolidating system. 53

57 2. Interconnection with an Existing System. Points will be awarded only for systems which propose an interconnection and water purchase agreement with another water system, which is SDWA compliant, as a means of resolving a water quantity or quality problem for which points are awarded. In cases where multiple systems will interconnect, point assignments will be based upon the number of service connections of the smallest system. Extra points for additional systems under the same project will be assigned at a rate of ten percent (10%) of the original rate for each additional consolidating system. 3. Projects are eligible for either consolidation points or interconnection points, but not both. Affordability Factor 1. Total Population Served. Points will be awarded for systems serving fewer than 1321 service connections. 2. Affordability Ratio. Points will also be awarded based on the value of the Affordability Ratio, calculated as the current average yearly residential rate, based on a usage of 4000 gallons of water per month, divided by the Median Household Income. The Median Household Income shall be based on the entire service area of the project water system using the most current information available. Other Factors Public Health Improvements or Deficiencies 1. Secondary MCL Violations. Points will be awarded only for those water systems where analyses document that a violation of an MCL for any of the Secondary Drinking Water Standards has occurred. 2. Fluoridation start-up. Points will be awarded for those water systems adding installing fluoridation to the treatment process. 3. A. Quantity Deficiencies, Continual Shortage (Frequent Outages). Points will be awarded only for a water system that experiences frequent complete pressure losses, which are the result of demand exceeding supply, and are not the result of main break, equipment failure, lack of proper maintenance, or other operational failures. 3. B. Quantity Deficiencies, Shortage During Peak Demand Period (Daily). Points will be awarded only for a water system that frequently experiences minimal pressures due to daily demand exceeding supply. 3. C. Quantity Deficiencies, Shortage During Peak Demand Period (Seasonal). Points will be awarded only for a water system that has to routinely issue conservation orders during heavy use periods or experiences minimal pressures during heavy use periods. 54

58 3. D. Quantity Deficiencies, Occasional Shortage During Peak Demand Period. Points will be awarded only for a water system that, once or twice a year, experiences some pressure loss due to peak demands. 4. A. Design Deficiencies, Inadequate Disinfection. Points will be awarded for a water system that either does not disinfect or does not continuously disinfect due to equipment failure or lack of adequate feed rate capacity. Points may also be awarded for inadequate chlorine contact time (CT) as defined by regulation. 4. B. Design Deficiencies, Inadequate Chemical Feed. Points will be awarded only for a water system that is unable to either reliably or consistently feed adequate chemicals to meet treatment objectives. 4. C. Design Deficiencies, Inadequate Mixing. Points will be awarded only for a water system whose rapid mixing detention time is inadequate based on Department design standards. 4. D. Design Deficiencies, Inadequate Clarification. Points will be awarded for a water system whose clarification process is functioning improperly due to an inadequate detention time, using Department accepted design standards. Points will be awarded for a water system where improper functioning is occurring due to mechanical or structural failure. 4. E. Design Deficiencies, Inadequate Filtration. Points will be awarded for a water system whose filtration process is functioning improperly due to excessive filtration rates, damaged underdrains, or other physical plant defects. Points shall not be awarded under this section if points were awarded under the section pertaining to filtration of surface water or groundwater under the direct influence of surface water. 4. F. Design Deficiencies, Inadequate Storage. Points will be awarded only for a water system whose usable storage is less than one day s average system demand. 4. G. Design Deficiencies, Inadequate Distribution (Low Pressures). Points will be awarded only for a water system that has areas of chronic low pressure due to localized peak demands. 4. H. Design Deficiencies, Inadequate Distribution (Deteriorated Mains). Points will be awarded only for a water system that has chronic consumer complaints that can be directly tied to the deterioration of cast iron, galvanized, or other metal piping, or has frequent main breaks due to deteriorated pipe. 4. I. Design Deficiencies, Inadequate Distribution (Unaccounted for Water). Points will be awarded only for a water system that has unaccounted for water at a level that exceeds 10% of average daily production. 4. J. Design Deficiencies, Inadequate Treatment Unit Capacity. Points will be awarded only for a system whose plant, or individual process units in the plant, are 55

59 undersized for process flow rates determined by using Department accepted design standards. 4. k. Design Deficiencies, Inadequate Intake Structure. Points will be awarded only for a water system whose intake structure is either unable to deliver an adequate quantity of water or whose intake structure will not allow for adjustment of withdrawal depth. 4.l. Design Deficiencies, Improper Well Construction. Points will be awarded only for a water system whose well is vulnerable to surface drainage into the well from improper wellhead and appurtenances construction or inadequate casing and/or grouting. Bonus Points 1. Board Member or City Council Training in the past 5 years. Points will be awarded to systems for training. 2. Up-to-date Asset Management Plan. Points will be awarded only for a water system whose Asset Management Plan is current. 56

60 Drinking Water Project List Priority No. Year Project Name Est. Binding Total Small System Disadvantaged PWS ID. Project Cost Commitment Population MHI Points (Y/N) (Y/N) Date Project Description Status of Project North East Water Association $12,200,000 TBD 3540 YES $19,689 YES System Expansion to serve Henderson & Gamaliel Areas No Funding Application Received Hozanna Heights Water Association $5,180 TBD 79 YES $18,682 YES New Treatment Installation No Funding Application Received Siloam Springs Water Works $21,033,125 TBD NO $38,750 YES Water Treatment Facility Improvements No Funding Application Received Scranton Waterworks $5,974,000 6/19/ YES $24,500 YES Connection to the City of Clarksville - Transmission Facilities ANRC Funding Conway Corporation $8,000,000 TBD NO $41,917 NO Water Quality Compliance Project No Funding Application Received Jasper $1,108,260 TBD 466 YES $14,333 YES Water Line Rehabilitation No Funding Application Received Marshall $965,100 TBD 2760 YES $30,214 YES Water Line Rehabilitation No Funding Application Received Siloam Springs $9,600,000 TBD NO $38,750 YES Rehab Tank, New RW Transmission Main, Rehab AC Dist Mains No Funding Application Received Bradley Waterworks $1,533,711 5/10/ YES $24,632 YES Distribution System Replacement ANRC Funding Gilmore $1,288,000 TBD 292 YES $48,750 NO New Water Treatment Plant and New Elevated Storage Tank No Funding Application Received City of Winthrop $1,633,098 8/29/ YES $32,250 YES Distribution System Replacement ANRC Funding Beebe $1,065,000 TBD 5000 YES $40,912 NO LWPWA Connector Main ANRC Funding Chidester Waterworks $1,643,716 6/14/ YES $28,000 YES Distribution System Replacement ANRC Funding City of Strong $1,341,781 TBD 1220 YES $21,250 YES Water Line Replacement No Funding Application Received Bella Vista POA 31 O39 $4,300,500 TBD NO $57,929 NO Distribution improvements No Funding Application Received Benton Washington RPWA $29,500,000 TBD NO $44,048 NO Water treatment improvements No Funding Application Received Lakeview Municipal Water $230,000 TBD 575 YES $15,536 YES Rehab of Storage Tank No Funding Application Received Wilton Waterworks $1,163,082 8/14/ YES $30,625 YES Distribution System Replacement ANRC Funding Coy Waterworks $46,000 TBD 310 YES $36,250 YES Rehab of Storage Tank No Funding Application Received City of Flippin $2,000,000 TBD 3325 YES $28,942 YES Storage/Distribution Improvements Entity decided not to get funding Wabbaseka Waterworks $405,000 TBD 244 YES $22,206 YES Water Treatment Rehab No Funding Application Received Mountain View Water & Wastewater $675,000 TBD 5864 YES $19,302 YES Distribution System Improvements No Funding Application Received City of Berryville $926,266 TBD 5020 YES $28,537 YES CR 501 Water Main Upgrade No Funding Application Received Tollette Waterworks $46,000 TBD 339 YES $21,125 YES Rehab of Storage Tank No Funding Application Received City of Bryant $2,000,000 TBD NO $54,521 NO Automated Meter Reading System & Replacement Entity decided not to proceed Ladd Water Association $365,000 TBD 2800 YES $28,891 YES Water System Improvements No Funding Application Received Bono Waterworks $180,000 TBD 1971 YES $31,429 YES Radio Meter Replacement No Funding Application Received Gosnell Water Association $750,000 TBD 3612 YES $42,475 NO System Loop No Funding Application Received Hampton Waterworks $296,340 TBD 1730 YES $32,500 YES Water Tank Rehab No Funding Application Received Hope Tank Rehab $500,000 TBD NO $29,774 YES Tank Rehab No Funding Application Received Gosnell Water Association $350,000 TBD 3612 YES $42,475 NO Meter Change out and Upgrade Project No Funding Application Received Hope WL $450,000 TBD NO $29,774 YES Water Line Replacement No Funding Application Received 57

61 Appendix B Public Notices and Comments On June 2, 2013, the State of Arkansas published the required public notice advertisement for the Drinking Water Intended Use Plan in the Arkansas Democrat- Gazette, a statewide paper. A public meeting was scheduled for June 17, 2013 and a deadline for submittal of written comments was set for June 17, Copies of the IUP were available for public inspection at the Water Resources Development Division of the Arkansas Natural Resources Commission. A meeting was held on June 17, 2013 at ANRC offices in Little Rock, to accept comments on the Intended Use Plan. Representatives of ANRC were available to answer questions about the Drinking Water IUP. No comments were received on June 17,